Set a Retainage % and Not Exceed Amount for your Prime Contract's payments.
Updated over 2 years ago Table of contentsRetainage is the amount of money withheld from payment to a contractor or subcontractor until a time specified in the contract. Retainage is calculated by setting a percentage for each payment made during the project. You can also set a Maximum Retainage Value, meaning retainage will be withheld until a specific dollar amount is exceeded or a not exceed amount. In Pegasus you can establish Retainage rules in the Prime Contract.
NOTE: You can use variable retainage percentage amounts for each payment created for the Prime Contract. These are retainage overrides. If using a variable percentage amount on your project you can leave the percentage amount blank in this section.
In your Draft Prime Contract, locate the Retainage section. Select the Edit button.
From the side blade widget enter the Retainage % in the Default Retainage Percent field (number only).
Enter the Retainage Max Value in the Max Retainage Value field (example: Retainage not to exceed $500,000.00).
Select the Save button.
Your Retainage rules will now be displayed in the Retainage section. Again, you can override these rules using the Pay Estimate in Pegasus by establishing a rule for that specific pay period or a specific item in that pay period. Retainage withheld can also be released from a specific Payment.